I have a folder of \Year 2015 and under that a sub-folder of \Videos 2015 so in Folder view I see \Photos\Year 2015\Videos 2015.

I have \Year 2015 marked as a Favorite and it shows the star in Folder view. \Videos 2015 does not have a star.

When I click on \Year 2015 in Folders I see just the images and no videos from the sub-folder. When I click on Year 2015 in Favorites both my images and videos from the sub folder are shown.

Is this by design that the favorite shows sub-folders as well?

I don't mind because next year I'm changing my folder structure and breaking down the year to month sub-folders. It will be nice for my wife when she wants to browse images and videos by clicking on just the Favorite rather than multiple folders (she's not very tech oriented ) but if it's a bug that may change I will have to figure out a Plan B.

Edit: Never mind. Right after posting I discovered that by right clicking on the Favorite Year 2015 there is an option of "Hierarchical" that was checked so it included sub-folders. Unchecking just showed the main \Year 2015 folder contents.